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About NPPA

ABOUT NATIONAL PHARMACEUTICAL PRICING AUTHORITY

National Pharmaceutical Pricing Authority (NPPA) was constituted through a Government of India Resolution dated 29th August, 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers as independent regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices. NPPA's key responsibilities include fixing and revising drug prices as per the provisions of the Drugs Prices Control Order (DPCO), monitoring compliance and availability of drugs, and rendering advise on pharmaceutical policies. Currently, NPPA is implementing the Drugs (Price Control) Order, 2013 issued by the Department of Pharmaceuticals (DoP) as per the powers delegated to it.

NPPA provides ceiling price to all drugs notified under Schedule-I of DPCO and so far, it has given ceiling price to 928 scheduled formulations and retail Price to around 3111 new drugs. By invoking powers under Para 19 of DPCO, 2013, it has regulated prices of 106 anti-diabetic and cardio vascular drugs; coronary stents and knee implants in public interest.  In February, 2019, NPPA regulated the prices of 42 anti-cancer non-scheduled drugs under Trade Margin rationalization resulting in savings up to 90% amounting in case of 526 brands. During COVID pandemic too, NPPA had capped the trade margin of Oxygen Concentrators and five other medical devices viz. Pulse Oximeter, Blood pressure monitoring machine, Nebulizer, Digital Thermometer and Glucometer to ensure their affordability.

The Indian pharmaceutical industry is a significant player in the global pharmaceutical landscape and ranks 3rd globally in pharmaceutical production by volume and is today uniquely placed as the Pharmacy of the World. It is the foremost supplier of generics, vaccines and anti-retroviral drugs for developing countries. In terms of its size, the Indian Pharmaceutical Industries is currently valued at $ 50 Billion and is expected to reach $ 130 billion by 2030.  It is, thus, important to strengthen Indian Pharma and also to provide level playing field for businesses.

At the same time, out of pocket expenses on medicines remain the single largest cause for families being dragged below the poverty threshold in India. The Government of India has placed Drugs under section 3 of the Essential Commodities Act, 1955 to enable its regulation. The Government is committed to improve access to essential and lifesaving medicines as it impacts quality of public health as also the economic viability of vulnerable sections of the society.

NPPA strives to strike a balance between the interests of the consumers and the Pharma Industry within the ambit of the DPCOs. NPPA is expanding outside Delhi, through the Price Monitoring and Research Units (PMRUs) at State/UT levels, for strengthening, monitoring and public awareness. Currently, PMRUs have been set-up in 31 State/UTs.

NPPA has ‘Pharma Sahi Dam’ and ‘Pharma Jan Samadhan’ platforms for information on medicine prices and registering public grievances. Integrated Public Database Management System (IPDMS) 2.0 an initiative of the NPPA is a comprehensive digital platform designed to manage, regulate, and monitor prices of pharmaceutical products and medical devices. The system is a significant step towards enhancing transparency, efficiency, and accountability in the pharmaceutical and medical devices sector.

NPPA’s role as a Regulator is to work towards a Healthy Nation by making medicines accessible and affordable while creating an enabling environment for the Indian Pharmaceutical Industry to develop into a world leader. NPPA seeks cooperation of all stakeholders in this endeavour.